2017/12/20/(Wed)

DHL Global Forwarding to be the first ocean forwarder offering advanced biofuel servicesNew hassle-free service reduces carbon emissions to zeroAdditionally, the solution enables a significant reduction of local air pollutants

DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, and the GoodShipping Program, the world's first initiative to decarbonize the container shipping industry by changing the marine fuel mix, exclusively collaborate in making ocean freight transports more environmentally friendly. With the signed memorandum of understanding DHL Global Forwarding is the first to offer its customers the opportunity to select next generation marine biofuels rather than fossil fuels for their transports by sea.

"The partnership with the GoodShipping Program is a unique opportunity to drive change within the ocean freight industry and to contribute to DHL's environmental target of zero emissions by 2050. Our joint advanced biofuel service is designed as a supplement to our GoGreen Climate Neutral services or as an alternative, giving our customers even more opportunity to reduce their carbon footprint," Kathrin Brost, Global Head Customer Intelligence & GoGreen, DHL Global Forwarding points out.

Deutsche Post DHL Group has been exploring renewable fuels as an important lever to minimize ocean freights' impact on the environment. Key criteria are that they are produced sustainably and do not compete for example with food production for land use. Following strict sustainability standards, the waste-based biofuels must meet the requirements to be qualified as the cleanest biofuels currently available on the market. Based on a like to like approach, the current container fleet can bunker and burn advanced marine biofuel without any technical modifications.

"DHL's mission to reach zero emission logistics by 2050 made them a perfect partner for a strategic and mutually beneficial long term cooperation. Together with DHL, we provide global access to every single cargo owner that wants to help us clean up the marine fuel mix," said Astrid Sonneveld, Program Director at GoodShipping.

New service founds on the principle that greenhouse gas reductions are allocated to the customers. Each customer signing up for the service, orders truly green TEU-kilometers instead of just a regular shipment, with or without carbon offsets. The corresponding volumes of advanced biofuel will be used onboard of vessels of selected ocean carrier partners during regular operations. The more shippers use the new service, the higher the share of advanced biofuels for container shipping and the reduction of carbon emissions. The environmental benefits are quantified and protected from double claims and the CO2-benefits are allocated to the customer. Apart from reducing carbon emissions to zero, biofuels are essentially free of sulphur. The switch to clean-burning biofuels allows for very substantial reductions of particulate matter and some improvement of NOx performance.

In 2012, shipments transported via ocean freight in logistics accounted for approximately 2.2% of all carbon emissions globally1 and it is expected that this could increase to 17% of total global emissions by 2050, therefore underscoring the important role that carbon reduction can play within the shipping industry. With this development ahead the new GoodShipping service is a crucial element in paving the way for DHL's corporate mission to reduce all logistics-related emissions to zero by 2050.

The partnership agreement of DHL Global Forwarding and the Good Shipping Program is exclusive. Early 2018 the new service will be available to DHL's customers.

2017/12/14/(Thu)

DHL and Air Hong Kong extend their relationship with a new 15-year agreement [Integrator]

DHL will purchase eight A300-600F cargo planes from Air Hong Kong, and lease them back to the carrierAir Hong Kong has provided capacity for DHL Express since 2002; will continue to support rapid growth of DHL in the region

DHL Express, the world's leading international express services provider, has extended its partnership with AHK Air Hong Kong Limited with a new 15-year block-space agreement which will enable the carrier's overnight air services to continue supporting the DHL Express network until 2033.

As part of the new commercial arrangements, DHL will sell its 40% stake in Air Hong Kong to majority-owner Cathay Pacific, and purchase eight of Air Hong Kong's A300-600F cargo planes which will then be leased back to the carrier. The new arrangement will provide a stable revenue stream to Air Hong Kong and a predictable cost base for DHL. The new agreement takes effect on 1 January 2019, replacing Air Hong Kong's current agreement with DHL when it expires.

The new agreement will initially provide DHL with the same service and access to Air Hong Kong's capacity as per the current agreement, but allows for greater growth and flexibility in aircraft deployment and route selection to support DHL's express services in the Asia Pacific region. Air Hong Kong remains an important partner in DHL's Asia Air Network that utilizes more than 800 daily flights to the United States, Europe and around the Asia Pacific region.

"Asia is expected to experience exponential trade growth and our renewed block space agreement with Air Hong Kong forms a natural complement to DHL's broader growth strategy in Asia Pacific to meet continually strong market demand," said Ken Allen, CEO, DHL Express. "Air Hong Kong has provided the backbone of our air express capabilities in Hong Kong for 15 years since 2002, and the latest agreement with Cathay Pacific will allow it to reach even greater heights as we consolidate its operations for maximal efficiency and availability."

Cathay Pacific Chief Executive Officer Rupert Hogg said: "Air Hong Kong is a joint venture between Cathay Pacific and DHL that has proven extremely valuable to both our businesses, and we expect it to yield even better results and operational agility in its newest iteration. With Air Hong Kong becoming a wholly-owned subsidiary of our group, and with the block space agreement in place, these will enable us to invest in the long-term success of Air Hong Kong, which benefits from the prospering express air cargo market in the region, and capture the abundant business opportunities that are prevalent."

"This new block space agreement reinforces the successful and longstanding collaboration between DHL Express and Air Hong Kong as we gear up for ongoing growth in Asia Pacific trade, guaranteeing capacity on many of our critical routes that use Hong Kong as a logistics hub," said Ken Lee, CEO, DHL Express Asia Pacific. "With Hong Kong's merchandise exports between January and September 2017 growing by 8.5% compared to last year,1 we're keenly aware of the upward momentum that the region's trade lanes are facing. Our renewed partnership with Air Hong Kong, combined with the new leaseback deal governing its fleet, gives us greater flexibility to add new routes and optimize our aircraft utilization in the face of unpredictable changes or sudden increases in demand."

DHL Express recently also announced the expansion of its Central Asia Hub in Hong Kong, a dedicated and purpose-built air express cargo facility at the Hong Kong International Airport which services over 800 flights daily. The expansion will add an additional 8,000sqm of space as well as new technologies including automated X-ray inspection machines and material handling systems. The Central Asia Hub has seen shipping volumes grow 12% year-on-year for the past decade and already handles more than 40% of all DHL shipments in Asia Pacific. When operating at its full capacity, the annual throughput of the expanded CAH is expected to go up by 50% to 1.06 million tonnes per annum. The expanded CAH will handle six times more in terms of shipment volume than when it was first established in 2004.

2017/12/08/(Fri)

Over 180 supply chain leaders, industry partners, and innovators participated at DHL Innovation Center in GermanyWinners of DHL challenges announced: Vecna for robotics, Parcelly for sharing economy, and KWIK for "Shark Tank" start-up pitchPACCAR Parts took home the award for most innovative customer solution following the implementation of the DHL MetriX Freight dimensioning technology

DHL brought together cutting-edge frontrunners and start-ups in logistics and technology with its annual DHL Innovation Day in Germany. Competitions, interactive sessions and keynote speeches proposed new social approaches to transport and reimagined the future of tech in the industry. Participants answered DHL's call for a new mobile-piece picking robot prototype, as well as ideas for incorporating sharing economy strategies into logistics. Vecna from the US won the Robotics Challenge, while the start-up Parcelly from the UK took home the prize in the Sharing Economy Challenge. Entrepreneurs pitched ideas in the "Shark Tank" with KWIK being declared the winner, and PACCAR Parts was recognized for working with DHL on the most innovative customer solution.

"The pivotal forces of digitalization and globalization are reshaping our world, and DHL is committed to facilitating innovation that prepares us for these changes. We couldn't think of a better way to discuss the endless possibilities ahead of us than by bringing together these creative minds at our DHL Innovation Day. We congratulate all of the winners for pushing us one step closer to the future of logistics," said Matthias Heutger, Senior Vice President DHL Customer Solutions & Innovation.

Excellence through innovationFrom March to September this year, DHL accepted entries from all over the globe, proposing new prototypes for autonomous mobile-piece picking robots for warehouses, as well as sharing economy solutions for logistics. Finalists were selected by senior DHL executives, with three finalists for each challenge presenting their solutions in front of 180 senior supply chain professionals at DHL Innovation Day. Winners were chosen with a live audience vote.Winner Sharing Economy Challenge:

For the Robotics Challenge, which was hosted in collaboration with DELL EMC, finalists from Singapore, Switzerland, and the U.S. demonstrated their prototypes live. The robots were designed to autonomously navigate a warehouse and collect boxes of varying sizes from shelves to place in a cart. The winner, the Piece Picking Robot from US-based Vecna, received a grand prize of 15,000 euros, as well as a chance to participate in a proof-of-concept with DHL.

"We are thrilled that our prototype proved itself to be fit for the challenge of autonomous picking and excited to see how far our robot can go through our partnership with DHL," said Daniel Theobald of Vecna.

Dell EMC co-sponsored this year's DHL Innovation Day. As a company with a strong track record in delivering innovative solutions for organizations undergoing IT transformation, Dell EMC is well positioned to help tech leaders of the future explore new horizons in cutting-edge robotics and logistics. Timmy O'Dwyer, Vice President, Global Parts Operations and Limerick Site Leader at Dell EMC, said: "As one of the largest technology solution companies in the world, it has been a fantastic opportunity for Dell EMC to co-sponsor this initiative. We believe Innovation is at the core of digital transformation, and are proud to be involved in this robotics challenge."

Finalists of the Sharing Economy Challenge also presented their inspirational solutions aimed at rethinking the status quo of access and ownership. Out of over 60 submissions from around the globe, Parcelly took first place with their platform that coordinates convenient package drop-offs at local businesses, along with immediate notification and flexible pick-up times.

"We are encouraged by DHL's openness to logistics strategies that challenge conventional business models," said Sebastian Steinhauser from Parcelly. "We are absolutely on board with adapting to customers' changing needs by extending the capabilities at the first and last mile of the DHL network, allowing dynamic on-demand pick up and drop off."

Ending the conference on a high, four start-ups participated in a Shark Tank competition, in which entrepreneurs presented their ideas before an expert jury consisting of Dr. Alex von Frankenberg of High-Tech Gründerfonds, renowned founder and tech investor Frank Thelen of Freigeist, and Peer Bentzen of Deutsche Post DHL Group. The start-up of choice, KWIK, won and will have the chance to conduct a proof of concept with DHL and showcase its solution at the DHL Innovation Center.

KWIK impressed the judges with its online shopping solution that allows customers to reorder their favorite products with just the push of a button. KWIK's open marketplace and analytics dashboard also offers brands the ability to develop a direct relationship with customers.

"It was a great platform to illustrate how our solution combines the Internet of Things and online shopping to the benefit of both customers and companies," said Ofer Klein, CEO and Co-founder of KWIK.

Pushing the limits of logisticsDHL also recognized the most innovative customer solution from the past year. Michiel Greeven, Executive Vice President Sales Europe, DHL Express presented the honor to PACCAR Parts in recognition of their role in the co-creation DHL MetriX Freight, a high-potential dimensioning system developed by startup company Metrilus GmbH, jointly with DHL's innovation team. The need for a modern, low-cost, high performance dimensioning system was identified during an Innovation Center tour and workshop. Based on the camera sensors of a renowned game console manufacturer and Metrilus state-of-the-art software algorithms, DHL MetriX Freight allows for accurate measurement of a piece of freight - regardless of shape - in less than a second, a process that previously required up to a minute and two employees. A pilot was conducted with DHL, PACCAR Parts, and software start-up Metrilus and subsequently scaled up to five additional DHL sites. PACCAR Parts has shown a people- and quality-first approach, promoting a culture highly receptive to new technologies. Ever looking towards the next innovation, DHL and PACCAR's brand DAF will conduct a platooning pilot to demonstrate the safety and efficiency of wirelessly-linked truck combinations, or "platoons", in 2019.

Keynote speakers inspired attendees with new insights on social issues and technology. Thomas Ogilvie, Board Member for Human Resources at Deutsche Post DHL Group, emphasized how cultural change and innovation can be mutually beneficial, while Lufthansa's Dr. Christian Langer presented the impact of digitalization and evolving planning processes on business improvement efforts. Anab Jain of Superflux discussed future-focused topics from the internet of things to climate change in her talk on why imagining different futures matters.

DHL Innovation Day presents a chance to bring together senior supply chain leaders, innovators, industry partners, and start-ups once a year to push the limits of logistics and technology. Here the audience sees live demonstrations of new prototypes and participates through interactive workshops, voting on challenge winners, and the active exchange of ideas. DHL's challenges for 2017 focused on social issues, tech, and entrepreneurship and allowed an opportunity for bright minds from around the world to showcase ideas that could change the landscape of the logistics industry.